2013 ORS § 457.435¹

Property tax collection methods for existing plans

• special levies

(1) For each existing urban renewal plan that includes a provision for a division of ad valorem taxes under ORS 457.420 (Plan may provide for division of property taxes) to 457.460 (Financial report required for agency), the municipality that activated the urban renewal agency that is carrying out the plan shall adopt an ordinance choosing one of the options listed in subsection (2) of this section as the method of collecting ad valorem property taxes sufficient to pay, when due, indebtedness issued or incurred to carry out the plan as permitted by section 11 (16), Article XI of the Oregon Constitution.

(2) The options referred to in subsection (1) of this section are as follows:

(b) Option Two: To make a special levy in the amount stated in the notice given under ORS 457.440 (Computation of amounts to be raised from property taxes) (2) upon all of the taxable property of the municipality that activated the urban renewal agency, and upon all of the taxable property lying outside the municipality but included in an urban renewal area of the plan.

(3)(a) The total amount obtained under an option listed in subsection (2) of this section for any plan shall not exceed the maximum amount that could have been certified to the assessor for the plan under ORS 457.440 (Computation of amounts to be raised from property taxes) (1995 Edition) for the tax year beginning July 1, 1997.

(b) For each tax year beginning after the 1997-1998 tax year, the limitation of paragraph (a) of this subsection shall be adjusted by a percentage change equal to the percentage change in the increment within the urban renewal area from the preceding year.

(4)(a) The ordinance choosing the option referred to in subsection (1) of this section shall be adopted no later than July 1, 1998, and shall be applicable for tax years beginning on or after July 1, 1998. If not so adopted, the municipality shall be considered to have chosen Option One as its method of collection of ad valorem property taxes sufficient to pay, when due, indebtedness issued or incurred to carry out the existing urban renewal plan. An option, once chosen, may not be changed to another option. In addition, if Option Three is chosen, the amount specified in the ordinance choosing the option to be collected by dividing the taxes pursuant to ORS 457.440 (Computation of amounts to be raised from property taxes) shall not be changed by subsequent ordinance or amendment to the certified statement.

(5)(a) The county assessor, or county assessors if the taxable property is in more than one county, shall extend the special levy against all of the taxable property of the municipality that activated the urban renewal agency and all of the taxable property lying outside the municipality but included in an urban renewal area of the plan.

(b) Any amounts collected from special levies made under this section shall be paid into the special fund or funds of the urban renewal agency referred to in ORS 457.440 (Computation of amounts to be raised from property taxes) (6) and shall be used to pay the principal and interest to finance or refinance the existing urban renewal plan or plans of the urban renewal agency.

(6) This section applies to existing urban renewal plans with respect to principal and interest on indebtedness until the indebtedness is fully paid or it is found that deposits in the special fund are sufficient to pay the principal and interest on the indebtedness issued or incurred under the existing urban renewal plan.

Notes of Decisions

Tax incre­ment financing pro­ce­dure did not violate Article XI, sec­tion 11 of Oregon Constitu­tion which prohibits taxing units use of power of levy to raise more revenue than its tax base. Dennehy v. Dept. of Rev., 305 Or 595, 756 P2d 13 (1988)

3 OregonLaws.org assembles these lists by analyzing references between Sections. Each
listed item refers back to the current Section in its own text. The result reveals
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